Pages on key topics

8/21/11

Public sector settlements fall far behind inflation

Contrary to the angry suggestion of the Ontario Progressive Conservative party about “fat raises,” public sector union settlements are far behind the current rate of inflation in Ontario -- in fact, exactly half of the rate of inflation.

The Ontario Consumer Price Index (according to Statistics Canada) increased 3.0% for the 12 month period ending July 2011. This is down from 3.6% for the year ended June 2011.

Meanwhile public sector settlements in the first half of the year averaged only 1.5% per year according to the Ministry of Labour.

As has been the case for some time, union settlements are falling behind the rising cost of living.

Private sector union settlements have averaged 2.0% for the first half of the year. Private sector settlements were also a little higher than public sector settlements in 2010.